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Molina gets state financial assistance to bring 462 new jobs to Troy, Detroit

Photo by CoStar Group Inc.
Molina Healthcare of Michigan will move into the Troy Corporate Center.

Molina Healthcare of Michigan’s previously reported corporate relocation received state financial assistance Tuesday to bring 462 new jobs to Troy and downtown Detroit.

The Michigan Strategic Fund board unanimously approved a $2.3 million performance-based grant from the state to help Molina consolidate its Midwest operations into Michigan. The company is planning to purchase a 197,000-square-foot building in the Troy Corporate Center on West Long Lake Road east of Crooks Road, and also lease about 20,000 square feet of office space in downtown Detroit to house 125 employees. The remainder of the jobs will be located at the new facility in Troy, which Crain's first reported on earlier this month.

Molina, a subsidiary of Long Beach, Calif.-based Molina Healthcare Inc., is Michigan’s third-largest Medicaid HMO, and business in the state has been growing due to Michigan’s expansion of Medicaid under the Affordable Care Act.

Stephen Harris, Molina’s Michigan president, told Crain’s earlier this month that the company expects to add between 25,000 and 30,000 Medicaid members this year.

The company employs 318 in Michigan now and expects to bring in about 100 employees from outside the state.

Molina is planning a capital investment of $20.3 million in support of the expansion and expects the jobs and investment to begin in the second quarter.

According to a briefing memo from the Michigan Economic Development Corp., Molina was also considering locations in Kentucky, Texas, Florida and Arizona.

The need for the funding, according to the memo, is due to the wage gap between Michigan and other states up for consideration, and Molina said it expects to incur other increased costs by locating in Detroit, due to higher income taxes, reimbursement of parking and the need for more job training.

Harris said the jobs would be a mix of professional jobs, call center positions, claims positions and nurses.

As a part of the deal, the city of Detroit is offering a property tax abatement, and Troy is offering staff assistance, since it was unable to offer a tax abatement because Troy is not considered a distressed community, an MEDC official said.